Gemstar-TV (GMST) Plummets; Hedge Fund Citadel Losses $40M

Gemstar-TV Guide International (Nasdaq: GMST) is getting hammered today, despite being the target of a $2.88 billion takeover bid by Macrovision (Nasdaq: MVSN). Macrovision offered Gemstar-TV shareholders a $6.35 per share bid. Shares of Gemstar have fallen more than 25% today, but have since gained ground and are now trading relatively flat down about 17%, off about a dollar on the day.

Obviously, Gemstar investors did not like the $6.35 bid, which was only a 6% premium from yesterday's close. This offer is also about 15% lower than Gemstar's 52-week high, which was recently set at the end of October.

Gemstar-TV's largest shareholder, Citadel Investment Group, which owns about 8.9% of the Company, or about 38 million shares, has lost about $40 million as a result of today's decline in stock price. To say the least, Citadel's manager, Ken Griffin, is probably very unhappy with Macrovision's seemingly low offer.

Gemstar-TV Guide International, Inc., a media, entertainment, and technology company, engages in the development, licensing, marketing, and distribution of products and services for television (TV) guidance and home entertainment needs of TV viewers worldwide.

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